Legal Definitions - certificate of title

A certificate of title is an official document issued by a government authority, typically at the state level, that formally identifies the legal owner or owners of a specific piece of property. Its primary purpose is to provide clear evidence of ownership rights. While commonly associated with real estate and motor vehicles, this document can apply to various types of valuable assets. It is usually transferred from the seller to the buyer during a property transaction, serving as a key piece of documentation in establishing the new owner's legal claim.

It's important to understand that while a certificate of title proves who holds the title, it does not inherently guarantee that the property is free from all hidden claims or liens. A thorough title search is typically required to confirm a "clear" title before completing significant transactions, especially for high-value assets.

• Example 1: Manufactured Home Ownership

  Imagine a family purchasing a brand-new manufactured home (often referred to as a mobile home) to place on a plot of land they already own. In many states, the Department of Motor Vehicles or a similar state agency will issue a certificate of title specifically for the manufactured home itself. This document identifies the family as the legal owners of the structure, distinct from the land it sits on. When the family eventually decides to sell the manufactured home, this certificate will be signed over to the new buyer, formally transferring ownership of the home.

• Example 2: Aircraft Acquisition

  Consider an individual who buys a used private airplane from another owner. In the United States, the Federal Aviation Administration (FAA), a federal government agency, issues a certificate of aircraft registration which functions as the certificate of title for aircraft. This official document confirms the buyer as the legal owner of the airplane, providing indisputable proof of their ownership rights and allowing them to register and operate the aircraft legally. Without this certificate, the buyer would not be able to demonstrate their legal claim to the aircraft.